Max Life Cancer Insurance Plan

Max Life Cancer Insurance Plan is a health insurance plan which helps in facing the huge treatment costs involved with cancer. The plan covers both early stage cancers as well as major stage cancers and benefits are paid in both instances.

How does the plan work?

Step 2 – in case minor stage cancer or Carcinoma-in-Situ is diagnosed, 20% of the Sum Insured is paid immediately and premiums for entire plan tenure are waived off. The policyholder can claim a maximum of 5 claims or till the Sum Insured is exhausted for early stage cancers.

Step 3 – in case of diagnosis of a major stage cancer, the entire applicable Sum Insured is paid. Thereafter, 10% of the chosen Sum Insured is paid every year for 5 years and then the plan terminates.

Step 4 – in case the first diagnosis is a minor stage cancer and then a major stage is diagnosed, 20% of the Sum Insured is paid for the minor stage diagnosis. Future premiums are waived off and later when a major stage is diagnosed, the remaining 80% of the applicable Sum Insured is paid.

Step 5 – in case of death of the life insured or maturity, no benefit is paid.

Example

Anant, a 35 year old non-smoking male, buys Cancer Insurance Plan for a coverage amount of Rs.20 lakhs. The term is 20 years and premiums are paid annually.

Option 1 – Anant is diagnosed with a minor stage cancer in the 7th year of the plan. He gets 20% of the applicable Sum Insured. The applicable Sum Insured would be calculated by taking into account the increase in Sum Insured for the previous 6 years. The Sum Insured has increased by 10% for each claim-free year to Rs.30 lakhs. Thus, the benefit payable is Rs.6 lakhs. Future premiums would then be waived off.

Option 2 – Anant is diagnosed with a major stage cancer in the 7th year of the plan. In this case, he is paid the entire Sum Insured of Rs.30 lakhs (after increase) and the plan is terminated.

Option 3 – Anant is first diagnosed with minor stage cancer of the lung in the 7th policy year. He is paid Rs.6 lakhs immediately. His future premiums are waived off. Later, in the 10th policy year, Anant is diagnosed with a major stage cancer. In this case, the remaining Rs.24 lakhs of the Sum Insured is paid. Moreover, 10% of the basic Sum Insured (Rs.20 lakhs) is paid every year for 5 years. Thus, Anant gets Rs.2 lakhs every year for 5 years after suffering from a major stage cancer.

Option 4 – If Anant survives the plan tenure without facing cancer, no benefit is paid. If, however, he dies during the waiting period, 100% of the premiums paid are refunded.

Plan benefits

Cancer benefit – if the life insured suffers from cancer, the plan benefit is paid. In case of minor stage cancer, the benefit is 20% of the Sum Insured. After the minor stage cancer benefit is paid, premiums for the entire tenure are waived off. In case the life insured suffers from a major stage cancer, 100% of the Sum Insured is paid. Thereafter an income benefit of 10% of the Sum Insured is paid for five years and then the plan is terminated. If the life insured first suffers from minor stage cancer, 20% of the Sum Insured is paid and premiums are waived off. If, later, the insured is diagnosed with a major stage cancer, the remaining Sum Insured is paid. Then the income benefit of 10% of the basic Sum Insured is paid for 5 years and the plan is terminated. The Sum Insured would be higher of the basic Sum Insured or the Indexed Sum Insured which is the basic Sum Insured increased by 10% for every successive claim-free years.

Maturity Benefit – when the chosen tenure expires and the plan matures, no benefit is paid if the life insured does not suffer from cancer.

Death benefit – there is no death benefit under the plan if the life insured dies during the plan term. If, however, the life insured dies during the initial waiting period of 180 days, the premiums paid are refunded back.

Eligibility Criteria

Minimum

Maximum

Age at entry (in completed years)

25 years

65 years

Age at maturity (in completed years)

NA

75 years

Term of the plan

Opted policy expiry age – entry age, where, policy expiry age can be 55, 60,65,70,75 years

Premium paying options

Regular pay

Premium Paying term

Equal to the plan tenure

Sum Insured

Minors - Rs.10 lakhs

Rs.50 lakhs

What is not covered by the plan?

Illnesses occurring within the first 180 days of the policy are not covered.

After diagnosis of any stage of cancer, the life insured should survive for 7 days to claim the benefits.

For minor or major stage cancers, cancers resulting from HIV/AIDS, congenital conditions, pre-existing ailments, alcohol or drug abuse and nuclear, biological and chemical contamination are excluded.

Premium Illustration

Below are the sample rates of premium payable by a non-smoking male for different combinations of age, Sum Insured and plan term. Premiums are payable annually.